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Dmitry_Shevchenko [17]
3 years ago
10

Consider the market for minivans (Some would describe a minivan as a family car). Looking at the two statements, which one is tr

ue and which one is false? Then again, are they both true or both false? Statement 1: People decide to have fewer children. The demand curve for minivans will shift to the right. Statement 2: The stock market crashes lowering people’s wealth (Hint: Minivan would be considered a normal good). The demand curve for minivans will shift to the right.
Business
1 answer:
Allushta [10]3 years ago
7 0

Answer:

both statements are false

Explanation:

if People decide to have fewer children, there would be less demand for minivans as a result the demand curve would shift to the left.

also, if The stock market crashes lowering people’s wealth and minivans are normal goods, the demand for minivans would fall and the demand curve would shift to the left.

A leftward shift signifies a fall in demand while a rightward shift signals a rise in demand

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

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The following trial balance was taken from the books of Sheridan Corporation on December 31, 2020.
Leokris [45]

Answer:

Sheridan Corporation

a. Adjusting Journal Entries on December 31, 2020:

a. Debit Insurance Expense $2,000

Credit Prepaid Insurance $2,000

To record the insurance expense for the year.

b. Debit Bad Debts Expense $2,680

Credit Accounts Receivable $2,680

To record bad debts written off.

c. Debit Depreciation Expense - Equipment $12,260

Credit Accumulated Depreciation - Equipment $12,260

To record the depreciation expense for the year.

d. Debit Interest Receivable $672

Credit Interest Revenue $672

To record interest revenue receivable on the note.

e. Debit Rent Prepaid $5,400

Credit Rent Expense $5,400

To record rent prepaid, previously recorded as an expense.

f. Debit Salaries and Wages Expense $5,800

Credit Salaries Payable $5,800

To record accrued salaries.

b. Closing Journal Entries on December 31, 2020:

Debit Sales Revenue $268,000

Interest Revenue $672

Credit Income Summary $268,672

To close the revenue accounts to the income summary.

Debit Income Summary $202,040

Credit:

Cost of Goods Sold                 123,900

Salaries and Wages Expense  54,400

Rent Expense                             6,800

Bad debts Expense                   2,680

Insurance Expense                   2,000

Depreciation Expense             12,260

To close the expense accounts to the income summary.

Explanation:

a) Data and Calculations:

Sheridan Corporation

Unadjusted Trial Balance as of December 31, 2020:

Account Titles                               Debit     Credit

Cash                                             $8,500

Accounts Receivable                   40,700

Notes Receivable                          11,200

Allowance for Doubtful Accounts               $1,870

Inventory                                     35,300

Prepaid Insurance                         4,720

Equipment                                 122,600

Accumulated Depreciation--Equip.             14,100

Accounts Payable                                        10,100

Common Stock                                           49,100

Retained Earnings                                     64,550

Sales Revenue                                        268,000

Cost of Goods Sold                 123,900

Salaries and Wages Expense  48,600

Rent Expense                           12,200

Totals                                   $407,720 $407,720

Adjustments:

a. Insurance Expense $2,000 Prepaid Insurance $2,000

b. Bad Debts Expense $2,680 Accounts Receivable $2,680 (1% of $268,000)

c. Depreciation Expense - Equipment $12,260 Accumulated Depreciation - Equipment $12,260 (10% of $122,600)

d. Interest Receivable $672 Interest Revenue $672 (6% of $11,200)

e. Rent Prepaid $5,400 Rent Expense $5,400

f. Salaries and Wages Expense $5,800 Salaries Payable $5,800

Sheridan Corporation

Adjusted Trial Balance as of December 31, 2020:

Account Titles                               Debit     Credit

Cash                                             $8,500

Accounts Receivable                   38,020

Notes Receivable                          11,200

Interest Receivable                           672

Allowance for Doubtful Accounts               $1,870

Inventory                                     35,300

Prepaid Insurance                         2,720

Prepaid Rent                                 5,400

Equipment                                 122,600

Accumulated Depreciation--Equip.           26,360

Accounts Payable                                        10,100

Salaries Payable                                           5,800

Common Stock                                           49,100

Retained Earnings                                     64,550

Sales Revenue                                        268,000

Interest Revenue                                            672

Cost of Goods Sold                 123,900

Salaries and Wages Expense  54,400

Rent Expense                             6,800

Bad debts Expense                   2,680

Insurance Expense                   2,000

Depreciation Expense            12,260

Totals                                   $426,452 $426,452

8 0
3 years ago
A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,020,000,
murzikaleks [220]

Answer:

(A) $180,000 (B) A journal entry was prepared for over- or under applied overhead to cost of goods sold.

Explanation:

Solution

Now,

Let us recall from the statement from the example as follows:

A company gives an overhead at =1 60% rate

The actual overhead cost for the present period is =1020,000

Direct cost of labor = $525,000

Then,

(a) For the under applied overhead using T account we have the following:

The direct labor cost overhead  = 525,000 *  160% (allocated overhead)

=$ 840,000

Thus

The Under applied overhead becomes,

Under applied overhead =The actual overhead - applied overhead

In other words we deduct the actual overhead for applied overhead

=$1020,000 - $840,000 = $180,000

(B) A Journal entry is carried out for the close over or under applied overhead.

Date Particulars                       Debit              Credit

               Cost of goods sold A/c $180,000

               Manufacturing overheads              $180,000

5 0
3 years ago
When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market price of the older bond ___
azamat

Answer:

The Answer is B) Rises in the secondary market decreases.

                                 

Explanation:

When the coupon rate on newly issued bonds<u> decreases</u> relative to older, outstanding bonds, the market price of the older bond rises in the <u>secondary market.</u>

<u></u>

A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate

For example, a $2,500 bond with a coupon of 10% pays $250 a year. Typically these interest payments will be semiannual, meaning the investor will receive $250 twice a year.

If two bonds offer different coupon rates while all of their other characteristics (e.g., maturity and credit quality) are the same, the bond with the lower coupon rate generally will experience a greater decrease in value as market interest rates rise.

Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.

Cheers!        

4 0
2 years ago
One technique to identify use cases is to ask users what they want to achieve with a particular business procedure. this techniq
Nikolay [14]
<span>One technique to identify use cases is to ask users what they want to achieve with a particular business procedure. This technique is called the user goal technique.
It is pretty straightforward, when you think about it. What you want to achieve is your goal, and given that you are the user here, what you want to achieve is user goal. </span>
6 0
3 years ago
The sources of customer expectations are market-controlled factors such as:
Volgvan
I think the answer is D) Sales promises
5 0
3 years ago
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